the financing & payment service needs of the IT & ITES industry Make in Pakistan: the financing & payment service needs of the IT & ITES industry Asif Peer CEO, Systems Limited

Challenges and Opportunities Digital Commerce Challenges and Opportunities

140M 60M 100,000+ 50,000+ Digital Commerce Fundamentals are in Place Business activity increasing as infrastructure has developed 140M 60M 100,000+ 50,000+ Users actively using mobile phones Have access to broadband Software freelances, web designers… E-Merchants/small businesses on Facebook, OLX, Daraz, etc. Active Cellular Users Internet Penetration Offshore Digital Service Providers Domestic Digitally Enabled Businesses

Challenges Faces Digital Commerce Growth despite hurdles Offshore Service Providers Lack of recognition as a legitimate profession Payments disconnected from role as a service provider Receiving payments through international services is expensive and cumbersome Software developers, Web designers Graphic artists, Social media marketing

Challenges Faces Digital Commerce Growth despite hurdles Digitally Enabled Businesses (50,000+) Lack of recognition as a legitimate profession Limited resources Receiving payments through banking channels is cumbersome and expensive Small Businesses -- Merchandise sale on marketplaces (Facebook, OLX, Daraz) Service providers (real-estate agents, car dealers, tax consultants…)

International Services are Sub-Optimal Expensive Payment and collection lag Bi-directional – may enable outbound capital flight Limited control and visibility for Government and Regulators Allow users to keep payments abroad Disconnected from promotional aspirations of local industry

+ + + Solutions: Aligned Stakeholder to Support Innovation Technology & payments plumbing readily available; institutional support is missing link Payments from anywhere in the world Received instantly and securely in Pakistan In Bank Account At retailer, with biometric verification Software Development Companies + + +

Issues Faced by Local Tech Companies Working Capital Financing not Possible on Intangible Assets Limited Local Venture Capital Funding Attracting International Investors is a Challenge

100M+ 25,000+ 7B+ Case Study – Systems Limited Initiative… OneLoad App for Retailers to Provide Digital Services to Customers ONELOAD SOLVED ISSUES FACED BY RETAILERS 100M+ Customers served Order & Sell Digital Products: No physical inventory to manage. Retailer orders electronically upon consumption for sale. Instant settlement & commissions realized. 100% transparency with no hidden charges Transaction History: Recording of purchase, consumption & earnings Request for Payment: E-invoicing and option of sending request for payments Lending: Provision of lending to small retailers through banking partners based on actual transactional and earning data 25,000+ Active Retailers 7B+ PKR Gross Merchandise Value annually Operationally break even in 2018 with 80% receivables through banking channels. OUR PROBLEM……. Lack of knowhow amongst banks and taxation authorities on how to treat such businesses resulting in an inability to get a simple working capital line

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